Post-demonetisation the real estate sector saw a drop in prices by up to 5-10 per cent, according to data shared by the housing and urban affairs ministry. In fact, there could be further price correction and the ministry is optimistic most of the non serious and fly-by-night players will vanish soon, housing and urban affairs minister Hardeep Singh Puri.
Claiming demonetisation had the maximum positive impact on the real estate sector, Puri said this had been one of the main hub of parking black money. “There has been some correction in prices and the ultimate beneficiaries are the end buyers,” Puri told TOI.
Added to the drop of 5-10 per cent in property prices, many developers offered freebies during the past one year in the range of 5-7 per cent.
Together, effectively the discount/ correction is expected to be up to 15 per cent, the ministry said.
The data also show that the average resale price of properties witnessed a dip of 10-15 per cent immediately after demonetisation. However, price correction has happened in the past couple of months in the case of ready-to-move in properties.
Similarly, new launches of projects since January has been less across top 10 cities including Noida, Pune, Mumbai, Chennai, Hyderabad, Bengaluru and Ahmedabad. Only exception has been Gurgaon which has witnessed 72 per cent increase in new launches on year on year basis in the case of affordable housing segment under the state government scheme, the ministry data said.
Puri said the implementation of Real Estate Regulation Act (Rera), transparency in the sector and impact of demonetisation will bring a new phase where the ongoing projects will get completed. “Some states have messed up the issue of ongoing projects. But we are trying hard to push the case of genuine buyers,” the minister said.
“All the initiatives we have taken will have their impact. Many of the projects will get completed by the builders or by some other entities,” Puri said.